Fisker founder and CEO told CNBC on Thursday that the launch of electric vehicles is trying to do more than slip a market share from Tesla.
Henrik Fisker made the comments in an interview with “Mad Money,” a day after his company announced it had signed a key production agreement with Foxconn Technology Group. The Taiwan-based company is best known for its iPhone-mounting feature for Apple.
“At the end of the day, we’re not here to go bring Tesla customers to Tesla,” Fisker told host Jim Cramer. “It’s great if they come … but the real market opportunity is the 80 million people who buy a new car every year. This is a huge opportunity.”
Cramer had asked Fisker how he believes the design of the company’s first expected vehicle, called the Ocean, rivals those of Elon Musk’s Tesla, which is the dominant EV brand in the United States.
While battery-powered electric vehicles are expected to continue to grow in market share compared to internal combustion engines, the space is growing more and more. In addition to startups like Fisker, established automotive titans like General Motors and Ford are investing heavily.
“We didn’t want to make another ‘I-too’ Tesla. That’s what they’re doing. It’s fantastic, but we really want to make an alternative,” said Fisker, who declared the Ocean a real SUV. “This is what will set us apart from other car companies that actually make hatchbacks or sedans,” he added.
The Ocean, which has a starting price of $ 37,499, is expected to go into production in the fourth quarter of next year. In October, Fisker reached an agreement with automaker Magna International to manufacture the ocean.
Fisker, a well-known car designer who initiated his previous EV to file for bankruptcy, said the company’s ability to secure high-profile partners at Magna and Foxconn demonstrated its potential.
Fisker and Foxconn have so far signed a memorandum of understanding, with the agreement set to close in the second quarter of 2021. According to the companies, Foxconn plans to manufacture Fisker’s second vehicle; production is scheduled for the fourth quarter of 2023.
“When it comes to Foxconn, I think it really stamps on steel that we almost have a business model that works. It wasn’t a single thing that we made a deal with Magna,” Fisker said.
Fisker, which went public last year through a reverse merger, saw its shares fall 4.43% Thursday to $ 21.58 per share. The company posted fourth-quarter results after the bell, and reported a $ 31.3 million operating loss.